Hannah Phung, a lead analyst at on-chain analytics platform SpotOnChain, just lately gave her opinion on the influence that Bitcoin Halving may have on the flaghsip crypto’s value. This provides to the continuing debate on whether or not or not the Halving occasion may trigger Bitcoin’s price to rise to $100,000.
Bitcoin’s Price Surge Might Not Come Immediately
Phung talked about throughout an interview with BeInCrypto that Bitcoin’s value tends to extend round 6 to 12 months after the Halving and never instantly. This is clear from the previous Halving occasions, as Bitcoin’s significant price gains took place one 12 months after the Halving had occurred. After the primary Halving on November 28, 2021, Bitcoin noticed a value enhance of over 8,000% one 12 months after the occasion.
Source: Milk Road
Meanwhile, BTC noticed a value enhance of 284% and 559% one 12 months after the second and third Halving occasions, which befell on July 9, 2016, and May 11, 2020, respectively. Phung additional famous that Bitcoin’s value positive aspects come from the discount in Bitcoin miners’ supply, which helps enhance shortage and drive up its value, particularly when demand is steady.
In February, NewsBTC reported that Bitcoin’s demand was far outpacing the miners’ provide. This led to a number of crypto analysts making bullish predictions that Bitcoin’s value may enhance exponentially when miners’ rewards are additional minimize in half later this month. One such analyst was MacronautBTC, who raised the potential for Bitcoin rising to $237,000.
This Bitcoin Halving Could Be Different
Despite the crypto market being identified to comply with historical patterns, Phung emphasised that the market can be unpredictable, opening the potential for this Halving being totally different from previous ones. Moreover, this cycle has already confirmed totally different, contemplating that for the primary time, Bitcoin hit a new all-time high (ATH) earlier than the Halving.
Furthermore, the analyst acknowledged that the Bitcoin market is “much larger and more established compared to earlier halvings.” However, Phung nonetheless expects a value enhance after the halving, though she admitted that the precise timing is unsure, which means it could possibly be earlier and even later than traditional.
Crypto analyst Rekt Capital additionally echoed the same sentiment about how issues could possibly be totally different this cycle when he shared his analysis of the 5 phases of the Bitcoin Halving. Specifically, he said that the Re-accumulation part “may not last very long before additional uptrend continuation” since that is the primary time the Re-accumulation vary might be round a brand new ATH.
Market Sentiment Could Determine Bitcoin’s Price Post-Halving
Phung additionally elaborated on how the market sentiment after the halving may present insights into Bitcoin’s future trajectory. She predicts that crypto investors will possible be bullish as soon as the halving takes place, contemplating the importance of the occasion on Bitcoin’s provide.
However, as soon as the thrill in regards to the halving wears off, a number of metrics, reminiscent of value charts, buying and selling quantity, social media discussions, and on-chain knowledge like energetic addresses or exchange supply, will must be analyzed to find out whether or not or not buyers are nonetheless bullish.
Meanwhile, Phung urged that the value surge that happens instantly after the Bitcoin halving is probably not shortlived this time round since extra institutional investors at the moment are concerned and have helped create a “more mature market.”
BTC value rises to $70,700 | Source: BTCUSD on Tradingview.com
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